SN Deal May be Near
Carlsberg, Heineken move on Scottish & Newcastle
After three months of battles, Scottish & Newcastle has agreed to enter discussions that would result in Carlsberg and Heineken taking over the UK brewing giant.
S&N agreed to open its books after the pair increased their bid for the third time, ending a three-month takeover stand-off.
The group’s chairman, Sir Brian Stewart, had fiercely held out against the Dutch and Danish suitors, but sources said the two sides entered talks this week.
Sources close to S&N last night insisted that the group’s decision to open its books for due diligence was only the “start of the negotiations”, while people close to the bidders described it as a “done deal” pending the outcome of the due diligence.
Heineken and Carlsberg first approached S&N in October. S&N owns the Newcastle Brown, Kronenbourg and Strongbow brands, but the center of interest is Baltic Beverages Holding, the fast-growing Russian and Baltic brewer that S&N jointly controls with Carlsberg on a 50-50 basis.
Scottish & Newcastle has been given an extra 24 hours to try and thrash out a recommended takeover bid by Carslberg and Heineken.
The Takeover Panel confirmed it had agreed a further day’s extension to the ‘put up or shut up’ deadline for Carlsberg and Heineken to table a firm offer. The extension was granted this morning at the request of S&N’s advisers after all-night talks with the consortium failed to finalize the terms of a takeover.